Customer Stock incentives programs

Abstract

The present invention provides a fresh method for generating customer loyalty through stock related incentives. Instead of the traditional stock incentive plans for only employees and investors, the present invention stresses the crucial importance of customers in an increasingly complicated business world. In a reward program dedicated to customers, customers will receive a set amount of stock options (or stocks) according to their revenue generating potentials. The number of stock options (or stocks) will continue to be distributed to customers throughout the business reporting cycle. (quarterly, semi-annually, or annually) based on each customer's contribution in generating corporate revenues. Overtime, customers will become significant stockholders of a company, and they will continue to reward the company with their loyalty not just through words, but through actions given the fact that the future growth and profit potential of the company are of personal interests to the customer stockholders.

1 . A method of rewarding or building customer loyalty in which a) a company (or a stock issuing business entity) grants its customers with set amount of stock options (or stocks); b) the initial stock option (or stocks) offering quantity for each customer will be based on each customer's revenue generating potential or any other method or combination of methods as dictated by said company or said business entity; c) said company (or said business entity) will record each customer's revenue contribution to the company (or said business entity) during each reporting cycle (quarterly, semi-annually, or annually); d) each customer will be granted additional stock options (or stocks) based on his/her/its revenue contribution to said company (or said business entity); e) reward ratio affects the amount of stock options (or stocks) a customer will receive; f) the more contribution a customer gives, the more stock options (or stocks) he/she/it receives; g) overtime, those customers made momentous contributions to the revenue will become significant shareholders of said company (or said business entity); h) said company (or business entity) will be able to reward and retain valuable customers while growing itself at the same time; i) there is a first mover advantage in adopting stock incentive plans for customers; j) said method contains a holding period determined by the said company (or said business entity) so that customers will not be able to sell the company stocks in order to stabilize stock prices and to avoid customers making frequent switches to other companies.  
     
     
         2 . A method as in  claim 1  wherein said stock incentive plan (or stock rewarding plan) is for publicly traded companies.  
     
     
         3 . A method as in  claim 1  wherein said stock incentive plan (or stock rewarding plan) is for privately held companies.  
     
     
         4 . A method as in  claim 1  wherein said companies (or business entities) are online companies.  
     
     
         5 . A method as in  claim 1  wherein said companies (or business entities) are traditional offline companies.